Core Sector Growth Slows To 1.7% YoY In April

New Delhi, May 20 (KNN) India's Index of Eight Core Industries (ICI) grew at a provisional rate of 1.7 per cent year-on-year (YoY) in April 2026, according to data released by the Commerce & Industry Ministry on Wednesday.. 

While cement, steel, and electricity provided positive momentum, significant contractions in coal, crude oil, natural gas, and fertilisers weighed on overall performance.

The eight core industries — coal, crude oil, natural gas, refinery products, fertilisers, steel, cement, and electricity — together account for 40.27 per cent of the weight in India's Index of Industrial Production (IIP), making the ICI a key barometer of broader industrial health.

Sectors in Positive Territory

Steel was the standout performer, recording 6.2 per cent YoY growth in April 2026, building on a robust cumulative expansion of 9.5 per cent over the full year FY2026.

Cement output rose 9.4 per cent YoY during the month, supported by continued construction and infrastructure activity, with cumulative FY2026 growth standing at 8.7 per cent.

Electricity generation posted a 4.1 per cent YoY increase in April, with cumulative growth of 1.0 per cent over FY2026.

Sectors Under Pressure

Coal production fell sharply by 8.7 per cent YoY in April — the steepest decline among all eight sectors — with its cumulative index for FY2026 also slipping by 0.5 per cent.

Fertiliser output contracted 8.6 per cent YoY, while natural gas and crude oil declined by 4.3 per cent and 3.9 per cent respectively. Petroleum refinery products posted a marginal decline of 0.5 per cent.

Full-Year and Recent Context

The final growth rate for March 2026 was revised to 1.2 per cent. For the full fiscal year FY2026 (April to March), the cumulative ICI growth stood at 2.7 per cent over the corresponding period of the previous year — a moderation from the 4.5 per cent recorded in FY2025.

(KNN Bureau)